Turkey's Finance Minister projects drop in interest rates

ISTANBUL

The interest rates in Turkey will drop newt month, Treasury and Finance Minister Berat Albayrak has projected, also saying that he expected to see a “record” current account surplus for October.

Turkey, which recently faced currency shocks, “entered into the process of normalization” as of October, Albayrak said at the International Business Forum’s opening ceremony, in Istanbul.         

“Loan interest rate dropped to below 25 percent level and it will  further drop in December.”

“We will continue to take strong steps without compromising the budget discipline.”         

The inflation figures will be close to its targets in November  and December, the minister said.

Turkey works on a financial structure to deepen capital market in the country, he also said.

“Turkey’s recent process is a reflection of problems in international monetary system.”         

Albayrak said the one-currency-dominated monetary system is need to be diversified with regional cooperation between countries to minimize risks.

In August and September, “an economic operation” directly targeted Turkish lira and Turkey’s economic stability, he said.         

“This operation failed due to Turkey’s strong will. The country cannot be put in a tight corner with political or economic instruments, same as before.”

Earlier this month, the U.S. lifted sanctions on two Turkish Cabinet ministers, which were placed in September for not releasing American pastor Andrew Brunson, who was being tried in Turkey over terror charges. The pastor was released last month.

The tariffs and sanctions affected the U.S. dollar/Turkish Lira  exchange rate, which recovered to 5.3350 on Nov. 19.

The new economic program, which was announced in August, includes a series of measures and steps to provide fiscal discipline, reduce current account deficit, and boost productivity and savings.         

The 22nd International Business Forum (IBF) Congress was organized under the 17th Independent Industrialists and Businessmen Association (MÜSİAD) Expo that will start on onr Nov. 21.         

The IBF, established in 1995, provides a global business network, especially for Muslim businesspeople.